M bovis hits farm sales

The shadow of Mycoplasma bovis continues to loom over farm sales, as lawyers work on amending contracts to safeguard buyers and sellers.

However, in Nelson there was strong interest in hops while in Marlborough, suitable vineyard sites were constrained by shortage of supply.

Latest farm sale figures show 17 per cent fewer farms were sold for the year to the end of June, compared with the year before.

While the average price for all farms rose 3.7 per cent over the year, that was largely down to a hefty rise of 75.6 per cent in the median price per hectare for horticulture farms during the past 12 months.

Dairy property prices fell, on average, 8.4 per cent, finishing farms were down 5 per cent, while grazing farms rose by just 0.2 per cent.

The median price per hectare for a dairy farm is $31,881, a finishing farm $26,245 and a grazing farm $10,113.

On the other hand, a buyer would have to spend $279,543 for a horticulture property, largely because of the buoyancy of the kiwifruit and avocado industries.

Real Estate Institute of New Zealand rural spokesman Brian Peacocke said the issue of M bovis was becoming a constant.

‘‘We’re getting instances of some farm settlements being impacted by it, where there’s been no real provision being made for what happens if a disease is found in between when the agreement goes unconditional and when the settlement day comes along,’’ Peacocke said.

‘‘Warranties and terms and conditions are going to need to be modified to cater for M bovis, that work is being done at the moment. At the same time we’re trying to put out protocols on a national perspective for real estate practitioners as well.

‘‘Lawyers are looking at how to protect both buyers and sellers, more in the South Island because the disease has been there longer but also now in the North Island. We’re dealing with solicitors who are looking to come forward with the appropriate clauses for the various contingencies that are arising,’’ Peacocke said.

Horticulture continued to be a rising star in Northland, Bay of Plenty, Nelson and Otago. In Northland and Bay of Plenty, sales had been stimulated by kiwifruit orchard sales and general activity continuing at an ‘‘exceptional’’ rate, in part by Zespri releasing additional licences for gold kiwifruit.